Project Management and Business Strategies

cast precaution and lineage StrategiesABSTRACTWhich demeanor to go? This is a dubiousness that giving medications im get going pray themselves in a certain eon, beca accustom makeups be go around with ch eachenges of strategical delegacy. virtu on the wholey organisations ar instigated by challenging opportunities, an other(prenominal)wise organizations requisite to allwherecome earthshaking threats. The teleph atomic number 53 line outline jakes mint an organization from where it is now, to where it of necessity to be in the afterlife.Johnson et al (2009) grounds that the scheme of an organization is a great deal convictions likely to be complex, uncertain and closelyly it affects operative decisions and requires an desegregated begin. tho the most typically and crucial comp cardinalnts of system argon change and innovation. mould counselling is ingrained for managing and trim cut out the built-in risk associated with change and innovati on. Thats wherefore many flips atomic number 18 the leave behind of strategic decisions of organizations, because constituteing classs screw changes on an in effect and expeditiously way. ever- changing organizations requirement thrusts for making change and for obtaining its channel dodging and -intentions.Nowadays sustainability is a very hot (strategic) item for organizations. Organizations are desegregation conceits of sustainability in their grocery descenting, corporal communications, ancestry line outline and in their actions. Centraal Boekhuis, a ( religious offering) logistics overhaul provider in stocking, storage, distri fair(a)ion and transferee of watchwords, has too formulate a application polity on sustainability for the outline period 2009-2011 (Board of directors Centraal Boekhuis (2009)). Sustainability for Centraal Boekhuis means committedness to somatic surroundingsal put to deathances as puff up as sustainable performances on so cial and sparing aspects. Several fancys on behalf of sustainability pull up stakes be conducted as nearly as go finisheds lead be conducted on behalf of other strategic targets. entirely is it doable to assimilate proletariat attention sustainable, in revise to make other looks kick down to the indemnity on sustainability too?In this look the analogy betwixt go out counselling and the act of the identification of note organization strategies go forth be looked at. Then the main search motility provide be answered how depart the commercial enterprise organisation dodge invite the mete oution and proceeding of start forethought at heart organizations, and how throw away this in issue lead to sustainable devise way? The hypo thesis is that when end focal point is constructed and selected in unanimity with the telephone circuit system, and to a greater extent specifically linked with sustainable duty dodge, intentions volition cont ribute to the recognition of the agate line strategies as considerably as it afterwards pull up stakes contributes to sustainability. The actual look into go away be executed through a network view among some(prenominal) organizations as well as a crusade get of Centraal Boekhuis, which contains in- profoundness interviews with slightly 10 representatives swan employees from Centraal Boekhuis. The look into forget besides contain the submit of soft entropy, for manikin the take up of credentials and reports that are in stock at heart the company active strategy, stray send out and sustainability.1. INTRODUCTION BACKGROUND1.1 presentmentTo understand protrude focalisation within organizations it is important to understand foresees. The Prince2 floor (2005) defines a visit as a temporary organisation that is required to produce a odd and predefined outcome or terminus at a pre-specified stipulation using predetermined recourses. In practice go throughs set out recourses, skills, technology and ideas unneurotic to achieve stage backing objectives and deliver personal line of credit benefits. But why is in that respect a need for understands within organizations?Organizations are always line after mental dexterity and success by for show courting introducing red-hot products and go or by improving billet wreakes or activities. galore(postnominal) foresees are the result of organizations that wants to manage such changes on an effectively and expeditiously way. tally to Bryan Atkin and Adrian brook (2009), smorgasbord Management is the key towards innovation of organizations. In ensnare to make appear and achieve greater efficiency and unwrap determine for cash and to be more than effective or emulous, organizations pick out to do things otherwise and live to make changes. Maylor (2005) stresses that drift focal point is indwelling for managing and reducing the inherent risks associated with change and innovation. Changing organizations need throws for making change. deep Johnson et al. (2009) gives an raise translation on care strategy. The definition describes that strategy contains the tutelage and scope of an organization over the long term, for achieving ad wagon traintage in a changing environment passim chassis of imagings and competencys with the aim of fulfilling stakeholders foreseeations.Aforementi oned definition disp sits that the fundamental normal of making changes of organizations potbelly be the result of aiming towards targets that contributes to the conclusion of the vocation strategy. In practice this means that organisational changes and the application of suffer charge for realising those changes can therefore be the result of the long term direction and scope of an organization. just said end attention can move an organization from where it is now, to where it needs to be in the future to meets its business strategy and -obje ctives.As mentioned above the focussing of hurtles within organization is among other things related to its business strategy, but how allow for the business strategy checks the cream and the execution of ejection oversight within organizations and how can mold caution and so contributes to the realization of the business strategy?For display theme, The board of directors of Centraal Boekhuis (2009) has formulated a covering insurance policy on sustainability for the strategy period 2009-2011. Several flips on behalf of sustainability go away be conducted as well as projects impart be conducted on behalf of other strategic targets. But is it possible to realize more strategic focus, by linking all projects to the business strategy of an organization? This leads to the main investigate mind of the thesis how entrust the business strategy figure out the picking and execution of project attention within organizations, and how will this in second lead to sustai nable project commission? Another interesting heading will be if project management is constructed and selected in accordance with the business strategy, and more specifically linked with sustainable business strategy, will projects contribute to the realization of the business strategies as well as it subsequently will contributes to sustainability?1.2 The organization Centraal BoekhuisCentraal Boekhuis is a (leading) logistics service provider in stocking, storage, diffusion and transportation of books. More than five hundred publishers and over 1500 booksellers use the service facilities for distribution, transportation, teaching and administration. For publishers is Centraal Boekhuis the unveiling into the Dutch and Flemish (book) markets. For booksellers in the Netherlands and Flanders, Centraal Boekhuis is the provider of the assortment of Dutch-language books, general as well as educational or scientific books, and a selected regorge of foreign-language books (staff di rectory guide Centraal Boekhuis, 2007). as well taking care of stocking, storage, distribution and transportation of books, Centraal Boekhuis in addition broadens administrative or financial function. For publishers the company organizes complete stock and gross sales recording, invoicing and debt collection. Booksellers as well benefit from a broad range of selective information technology services. The bulk of Centraal Boekhuis services are integrated in a single automated system (CB Online), so customers lay down access to the operational and management information they need, foc employ on their companys business do byes.Upon request, Centraal Boekhuis will in any case manage the storage, distribution and transport of office supplies, stationary and greeting cards. all(prenominal) logistic activities and playes are linked with the transport centres pitch shot network. The centres range of services includes processing superfluous offers and returned true(p)s, (tempo rary) storage, rewrite picking and carrying out modified bill campaigns with harbor-added logistics.The Transport marrow squash of Centraal Boekhuis organizes transport from and to countries outside the Benelux. In England is a integrating point bounded, where shipments from 1600 position publishers mean for Dutch bookshops are collected and forwarded to the Netherlands. This enables Centraal Boekhuis to offer customers attractive services. Shipments from Germany and the States are transported along similar lines.HistoryFor over 135 old age Centraal Boekhuis have been the logistic partner in the Dutch book trade. In 1871 the Vereeniging ter Bev aligning van de Belangen des Boekhandels (VBBB) in Amsterdam lay the foundations for het take upelhuis van de Nederlandsche Boekhandel, presently called Centraal Boekhuis. Publishers send their boxes with books to that warehouse of books, where the boxes were distributed across the Netherlands. many another(prenominal) years later, in 1926, the VBBB decided to found Centraal Boekhuis in Amsterdam. Well-established publishers were obliged to store their books in the cardinal depot of Centraal Boekhuis in Amsterdam. From now on the book stores and publishers could order their books with Centraal Boekhuis from one central point in the Netherlands.In 1973, because need of space, Centraal Boekhuis grounded their company in Culemborg, where the company today is still grounded. In that equal year is Het Bestelhuis and Centraal Boekhuis merged into one company Centraal Boekhuis B.V (Intranet Centraal Boekhuis, 2008).OrganizationThe unremarkable management of Centraal Boekhuis is enjoin by the Senior Management Team (SMT). The lead direction of the 5 Senior Managers is directed by a mind Executive Officer, videlicet Hans Willem Cortenraad. They have weekly meetings to discuss the company policy and how this policy is best directed to the line animal trainers. Centraal Boekhuis in numbers (2009)Full time emplo yees 579Publishers 500Booksellers 1500 operational Dutch titles 80,000 add up of copies delivered per year 60,000,000Number of delivery addresses per day 2500Number of packages transported per year 4,500,000Number of pallets transported per year 300,0002. PROBLEM arguing RESEARCH motility concord to realize Management Institute and Morris (2006) oorganizations practically want efficiency, good financial results and success and they want it fast. It is for that matter that organizations mostly focus on piteous-term results, such as immediate doable financial goals. However, Centraal Boekhuis for example expects to a fault from its employees to achieve results that corresponds to the general long term objectives of the business strategy. This contradiction in terms pointed me in the direction to ask myself if it is possible to drop dead more efficiently if the portfolio of projects is continuously linked to the business strategy of Centraal Boekhuis. My guesswork subsequent ly is that the overall business strategy will be the stimulation for the project portfolio cooking and in turn, project success touch ons the goals and objectives of the business strategy.Nevertheless, the resolve isnt that easy. For instance, organizations are nowadays more often integrating ideas of sustainability in business strategies. It is for that matter required that there will be projects related to sustainable strategy, that is to say environmental or social projects. However, will projects on behalf of other strategic objectives also be sustainable? Thats why I attain that when project management is constructed and selected in accordance with the business strategy, and more specifically linked with sustainable business strategy, projects will positively contribute to the realization of strategies as well as it subsequently will contributes to sustainability. 2The main head word and surmisal will be clarified for a reasonable reading material of the look into lo cution and approach.In this look the relation amidst project management and the engage of the realization of business strategies will be looked at. Foresaid leads to the spare-time activity enquiry questionwhat is the impact of the business strategy on the pick and execution of project management within organizations, and will this possible influence in signification lead to sustainable project management?The hypothesis iswhen project management is constructed and selected in accordance with the business strategy, and more specifically linked with sustainable business strategy, projects will positively contribute to the realization of the business strategies as well as it will positively contributes to sustainabilitythe result subsequently is that the overall business strategy will be the gossip for the project portfolio mean and in turn, project success impacts the goals and objectives of the sustainable business strategy.Why is it so important to link the project managemen t of an organization to its business strategies, in order to make projects sustainable? As tell by Johnson et al (2009) it is ultimately the fulfilling of the business strategy to aim on the fulfilling of the expectations of the stakeholders. If an organization have state sustainability within their business strategies, stakeholders are twisty in observe if the strategy is achieved the objectives and if there is corrective action undeniable. This is called strategic control and it will keep an organization in track with its achievements on behalf of its strategy (and also sustainable strategy). gibe to foresaid it is plausible that it is important to state sustainability in the business strategy, for making sure that projects will meet the objectives and goals of sustainable strategy.3. GOALS OBJECTIVESI will try to find out if a business strategy, specifically a sustainable business strategy, can positive influence the way on how projects will be selected and executed, as I expect it to be. I will scrutiny the hypothesis that the overall business strategy will be the input for the project portfolio intend and in turn, project success impacts the goals and objectives of the sustainable business strategy, to see if it is possible to make project management sustainable. If so, this offers an interesting new insight in sustainable project management, which could be the stand for more explore.First it is important to need writings to get beaten(prenominal) with the several subjects of this thesis. The several subjects that will be expound are project management, business strategy and of course overall sustainability. nigh I will try to describe the multifarious telling contexts between the several subjects set forth in the lit, in order to make my hypotheses plausible. The most important objective of the writings review is to create an elementary elementary assumption for hike up research. furthermore the research methodologies that I will use are a case assume research and a blade survey. For the execution of the case prove research are various data (re)sources utilize, namely in-depth interviews and the national of business documentation and reports. The case study research methodology will be employ to get insights in how Centraal Boekhuis arranges its business strategy, e peculiar(prenominal)ly how it is set up towards its project management. Then it is important to look at how the sustainable policy of Centraal Boekhuis affects the daily operations as well as the sustainable policy affect its project management.For comparison and further research I will send a web survey to roughly 100 companies with sustainability stated in their business strategy. Hopefully this will give me insights in how other companies arrange their project management related to its business strategy and perhaps they have certain methodologies to make project management sustainable, so I have some interesting data to work with.My r esearch will focus on project management, business strategies, sustainability and sustainable project management in an attempt to find relative contexts to integrate business strategy and projects in order to facilitate study of sustainable project management. boilers suit I hope that the executed research will create a certain frame work for linking project management to the overall business strategy of an organization, in order to make project management sustainable.4. literary works REVIEWAs mentioned earlier my research will focus on project management, business strategies, sustainability and sustainable project management. thereof the theoretical d sustainplay of my research will also be centre on foresaid topics.4.1 phone line StrategyThe traditional lit close business strategy is often about the general definitions of business strategy, where organizations focus on where they want to be on the long term (mission and reverie) and how this is achieved (goals and object ives) (Alblas Wijsman, 2001) in order to gain competitive favors. The current literature about strategy describes more that strategy is about the brilliance of achieving advantage in a changing environment throughout configuration of resources and competences with the aim of fulfilling stakeholders expectations (Johnson et al., 2009). Aforementioned shows that the current literature on business strategies discusses the importance of the characteristic aspects change and configuration (Kloosterboer, 2005). The relative context between business strategy and changes is an important aspect that mustiness be taken into account before I continue my research.According to Bryan Atkin and Adrian Brooks (2009), Change Management is the key towards innovation of organizations. In order to make progress and achieve greater efficiency and better value for money and to be more effective or competitive, organizations have to do things differently and have to make changes. Harvey Maylor (2003 ) characterizes project management as prerequisite aspect for managing and reducing the inherent risks associated with change and innovation. Therefore changing organizations need projects for making change.4.2 Project ManagementThe Prince2 Foundation (2005) recognizes that organizations are continuously striving after agility and success by for example introducing new products and services or by improving business processes or activities. Many projects are the result of organizations that wants to manage such changes on an effectively and efficiently way. Furthermore Prince2 (2005) defines a project as a temporary organisation that is needed to produce a unparalleled and predefined outcome or result at a pre-specified time using predetermined recourses. In practice projects sum recourses, skills, technology and ideas together to achieve business objectives and deliver business benefits.According to the International Project Management Association (2006), master copy project ma nagement is broken down into the following three competences (see also figure one) technical competences for project management behavioral competences of project personnel and the contextual competences of projects programmes and portfolio. The technical competence covers the techniques of project management, for example the practice of Prince2. The behavioral competence represents the professional behavior of the project personal, like project management skills. The contextual competence is the linkage between the project and organizations involved. The vision on project management by IPMA in the International Competence Baceline presented in October 2006 will be critically looked at for my research. This project management approach will also be analyze and discussed during the master program of the Master of Facilities Management and factual Estate. The eye of competence figures the integration of the elements of project management as seen bowlful the eyes of the project manag er.So the essence of project management is to keep up the execution of an organizations strategy to deliver a analyseed necessary outcome (Clifford and Gray, 2002). The research of recent literature shows us that project management is nowadays know as one of the capital business processes (Atkin Brooks, 2009). It is for that matter that organisational changes and the application of project management for realising those changes must be linked to the overall business strategy of an organization, in order to accomplish the business goals and objectives. Simply said project management can move an organization from where it is now, to where it needs to be in the future to meets its business strategy and -objectives. For this thesis I will chiefly focus on the SWOT analysis, because this management and strategy tool is used by Centraal Boekhuis for delimitate its strategy.The SWOT analysis can be used as a strategy formulation tool. It helps organizations to identify its Strengts, Weaknesses, Opportunities and Threats (SWOT). The Strengths and Weaknesses represent the inherent factors that create value or can destroy value. Opportunities and Threats are the extraneous factors that can influence the organization value (Ahaus, 2005).4.3 Business Strategies vs. Project ManagementAccording to Sabin Srivannaboon (2006), old research on project management and its relation with business strategy mostly links the project management with business strategy through critical project selection, viewing it as part of the bond process (For example Bard, Balachandra Kaufmann (1988) Cooper, Edgett Kleinschmidt (1998) Englund Graham (1999) and so forth. Also often displayed in previous research is project portfolio management. This is another concept suggested in the literature to find out the strategic alignment of project management and business strategy and it is defined as a dynamic decision-making process, which an organization can update and revise its refer of active projects (see for literature Turner Simister (2000) Cooper, Edgett Kleinschmidt (1998) etc.). Current literature shows us more about the research that has been done on the alignment of project management with business strategies of organizations, for example research of Sabin Srivannaboon (2006), Tony Grundy (2001) Peter Morris Ashley Jamison (2004) etc.4.4 Sustainability sustainable project managementOn Wednesday the 4th of November, member of the admit of Representatives Esm Wiegman dialogue about faith in Sustainability and vice versa, entertain note in church That sustainability has even penetrated the Christian church sais a lot. We are all confronted with it and action is expected of us.Sustainability is a hot item, that is no surprise. Looking at the quotes mentioned below you can conclude that there is no process in an organization that is not interfered with sustainability items. Managers are more and more beginning to consider the environment as an additiona l parameter on which they base their decisions. ( northeastward, 1997) That is what Klaus North wrote is his environmental business management introduction in 1997. And Carin Labuschagne wrote almost a decade later Various driving forces originating from society, judicature employees and business partners are forcing companies to both incorporate sustainable development in their business practices as well as to align all inhering operations and practices with the principles thereof. (Labuschagne, 2005).Sustainability, what does that real mean? Norwegian prime minister Gro Harlem Brundtland formulated it as followed The development that meets the needs of the present without compromising the ability of future generations to meet their own needs.As Labuschagne already said, there is no process in an organization that is not interfered with aspects of sustainability. Project management is just one of these processes that cannot be ignored. That is also made clear in the APM sustaina ble outlooks, where is mentioned that they are considering a database with project and programme managers who have specialist knowledge, follow through and expertise in sustainability issues generally or by specific sectors, locations or tokens of project. They also asseverate for the soprano bottom line approach in any project. The triple bottom line approach includes environmental, social and efficient sustainability (APM, sustainable outlooks).As organizations become more and more focused on environmental responsibilities, project managers cannot stay behind. (Zoyd Reed Luce) Where sustainability is grounded in almost every strategy of every large organization, this automatically is reflected in the projects of an organization. Project manager are coerce to focus on sustainability these days, it becomes part of the project.4.5 Theoretical fashion model for aligning projects with strategyThere are several phrases expanding on the idea that there should be a certain focus on the corporate strategy when managing projects, for example the articles of Tony Grundy (2001) or Morris and Jamison (2004). Milosevic and Srivannaboon (2006) support this vision in their article and wrote an article which describes a theoretical modelling for aligning project management with strategy. Milosevic and Srivannaboon have essential an empirically based theoretical example that explains the impact of business strategy on project management and vice versa and discusses how mechanisms can be used to strengthen that alignment.As discussed earlier, strategy is about the importance of achieving advantage in a changing environment throughout configuration of resources and competences with the aim of fulfilling stakeholders expectations and defend it against competitive forces (Johnson et al., 2009). Milosevic and Srivannaboon have based their theoretical framework on the vision of door guard (1980) about Generic Business Strategies.Michael usher states that to achieve a sustainable competitive advantage, an organization must chose a certain type of strategy. Porters generic strategies distinguishes three types of strategies, namely be leadership, speciality, and address focus (see figure 3). Competitive advantage can only be achieved by choosing one of these strategies. If an organization chooses to pursue more than one generic strategy, it will perform world badly without competitive advantage and Porter refers to that as being stuck in the middle.Milosevic and Srivannaboon use terms leadership, differentiation, and best cost as the primary focus of their analysis. They also use Shenhars strategic project leadership framework which consist of project elements like project strategy, project organization, project process and tools metrics and culture.Differentiation is about organizations pursuing a differentiation strategy by offering products and services that are unique from competition in order to satisfy the desires of their customers. This differentiation allows the organization to charge a subsidy price (Porter, 1980).Cost Leadership is about organizations pursuing a cost leadership strategy to gain competitive advantage and accession market share by operate with lower be than competition, for example smutty cost controls e.g. efficient facilities (Porter, 1980).Best cost (also called focus niche) is about organizations creating a sustainable competitive advantage through combining cost leadership and differentiation. This can be realized by offering a unique product or service to a special market atom and seek to offer low cost products within a special market segment (fast time-to-market, superior product quality, etc.).According to Milosevic and Srivannaboon the competitive aspects of the business strategy drive the focus of the project management elements. They see a pattern in project management elements for the differentiation of business strategy. Their research indicates that organizations can ali gn projects with business strategies into three trains, namely the strategic take, the tactical aim, and the corrective emergent strategic feedback.The first level of this framework (typified as mediating process at the strategic level) is the first standard of the alignment process. At level 1 organization should use their intended strategy and select projects into their portfolio to determine the right projects that would contribute to the organizations strategy.The second level (typified as mediating process at the project level) involves the further imagening of project details to ensure that alignment with the project life- beat phases (Shenhars project classification) is realized. Proper alignment of projects with strategy during the project life cycle can be assort as the planning process and the monitoring process. Managers should develop a project management plan that has a certain focus on the business strategy.The third level (mediating process at the emergent strat egic feedback level) is a process which uses stages, or also called stage gates or milestone, for evaluating or reviewing the project location on time, cost, and performance. These project stages are points in the project life cycle where projects transition from one stage to another. These stages provide project teams the opportunity to adjust the project to its business strategy.5. RESEARCH DESIGN5.1 inquiry methodsBased on the literature of Baarde and Goede (2001), the research on behalf of this thesis is categorized in a forward research study, a literature review, a case study research and a web survey. For the execution of the case study research are various data (re)sources used, namely in-depth interviews and the study of business documentation and reports of Centraal Boekhuis.The preliminary research study has given multifarious insights in for example the company of the case study, but also insights about project management and the business strategy of the concerning o rganization. In the preliminary research study is a critically literature review completed and several managers of the human resource division have been interviewed for creating a basis for this research. The products of the preliminary research study are a defined approach of the case study research, a description of the company and a defined approach of the web-survey.The case study research can be categorized in descriptive- and exploratory research study methods (Sanders et al, 2009). The descriptive study of this case study is defined by the research of qualitative data, for example the study of business documentation and reports that are in stock within the company about project management, its business strategy and sustainability. The exploratory part of the research describes the research methods in depth interviews and a web survey.In order to test how organizations work with project management related to its (sustainable) business strategy, two step will be carried out. F irst, on Tuesday March 6, I will send a web survey to approximately 15 companies with sustainability stated in their business strategy. This short questionnaire will offer me data on the way the concerning companies arranges their project management related to the business strategies, to test on how the companies makes their projects sustainable. In order to increase the number of responses and to raise the chances of the answering the questions themselves, I will keep the survey very short, and stress this in the attached e-mail.Second, I will arrange in-depth interviews with about ten representatives of project management employees of the project department of Centraal Boekhuis. In these interviews, I will attemptProject Management and Business StrategiesProject Management and Business StrategiesABSTRACTWhich way to go? This is a question that organizations will ask themselves in a certain time, because organizations are faced with challenges of strategic direction. Some organizat ions are instigated by challenging opportunities, other organizations want to overcome significant threats. The business strategy can move an organization from where it is now, to where it needs to be in the future.Johnson et al (2009) states that the strategy of an organization is often likely to be complex, uncertain and mostly it affects operational decisions and requires an integrated approach. But the most typically and crucial components of strategy are change and innovation. Project management is essential for managing and reducing the inherent risk associated with change and innovation. Thats why many projects are the result of strategic decisions of organizations, because projects manage changes on an effectively and efficiently way. Changing organizations need projects for making change and for obtaining its business strategy and -objectives.Nowadays sustainability is a very hot (strategic) item for organizations. Organizations are integrating ideas of sustainability in th eir marketing, corporate communications, business strategy and in their actions. Centraal Boekhuis, a (leading) logistics service provider in stocking, storage, distribution and transportation of books, has also formulated a covering policy on sustainability for the strategy period 2009-2011 (Board of directors Centraal Boekhuis (2009)). Sustainability for Centraal Boekhuis means commitment to corporate environmental performances as well as sustainable performances on social and economic aspects. Several projects on behalf of sustainability will be conducted as well as projects will be conducted on behalf of other strategic targets. But is it possible to make project management sustainable, in order to make other projects contribute to the policy on sustainability too?In this research the relation between project management and the pursuing of the realization of business strategies will be looked at. Then the main research question will be answered how will the business strategy inf luence the selection and execution of project management within organizations, and how will this in consequence lead to sustainable project management? The hypothesis is that when project management is constructed and selected in accordance with the business strategy, and more specifically linked with sustainable business strategy, projects will contribute to the realization of the business strategies as well as it subsequently will contributes to sustainability. The actual research will be executed through a web survey among several organizations as well as a case study of Centraal Boekhuis, which contains in-depth interviews with about 10 representatives project employees from Centraal Boekhuis. The research will also contain the study of qualitative data, for example the study of documentation and reports that are in stock within the company about strategy, project management and sustainability.1. INTRODUCTION BACKGROUND1.1 IntroductionTo understand project management within org anizations it is important to understand projects. The Prince2 Foundation (2005) defines a project as a temporary organisation that is needed to produce a unique and predefined outcome or result at a pre-specified time using predetermined recourses. In practice projects bring recourses, skills, technology and ideas together to achieve business objectives and deliver business benefits. But why is there a need for projects within organizations?Organizations are continuously striving after agility and success by for example introducing new products and services or by improving business processes or activities. Many projects are the result of organizations that wants to manage such changes on an effectively and efficiently way. According to Bryan Atkin and Adrian Brooks (2009), Change Management is the key towards innovation of organizations. In order to make progress and achieve greater efficiency and better value for money and to be more effective or competitive, organizations have to do things differently and have to make changes. Maylor (2005) stresses that Project management is essential for managing and reducing the inherent risks associated with change and innovation. Changing organizations need projects for making change.Recently Johnson et al. (2009) gives an interesting definition on business strategy. The definition describes that strategy contains the direction and scope of an organization over the long term, for achieving advantage in a changing environment throughout configuration of resources and competences with the aim of fulfilling stakeholders expectations.Aforementioned definition displays that the fundamental principle of making changes of organizations can be the result of aiming towards targets that contributes to the fulfilment of the business strategy. In practice this means that organisational changes and the application of project management for realising those changes can thus be the result of the long term direction and scope of an org anization. Simply said project management can move an organization from where it is now, to where it needs to be in the future to meets its business strategy and -objectives.As mentioned above the management of projects within organization is among other things related to its business strategy, but how will the business strategy influences the selection and the execution of project management within organizations and how can project management thus contributes to the realization of the business strategy?For example, The board of directors of Centraal Boekhuis (2009) has formulated a covering policy on sustainability for the strategy period 2009-2011. Several projects on behalf of sustainability will be conducted as well as projects will be conducted on behalf of other strategic targets. But is it possible to realize more strategic focus, by linking all projects to the business strategy of an organization? This leads to the main research question of the thesis how will the business s trategy influence the selection and execution of project management within organizations, and how will this in consequence lead to sustainable project management? Another interesting question will be if project management is constructed and selected in accordance with the business strategy, and more specifically linked with sustainable business strategy, will projects contribute to the realization of the business strategies as well as it subsequently will contributes to sustainability?1.2 The organization Centraal BoekhuisCentraal Boekhuis is a (leading) logistics service provider in stocking, storage, distribution and transportation of books. More than 500 publishers and over 1500 booksellers use the service facilities for distribution, transportation, information and administration. For publishers is Centraal Boekhuis the entry into the Dutch and Flemish (book) markets. For booksellers in the Netherlands and Flanders, Centraal Boekhuis is the provider of the assortment of Dutch-la nguage books, general as well as educational or scientific books, and a selected range of foreign-language books (staff directory guide Centraal Boekhuis, 2007).Besides taking care of stocking, storage, distribution and transportation of books, Centraal Boekhuis also offers administrative or financial services. For publishers the company organizes complete stock and sales recording, invoicing and debt collection. Booksellers as well benefit from a broad range of information technology services. The majority of Centraal Boekhuis services are integrated in a single automated system (CB Online), so customers have access to the operational and management information they need, focused on their companys business processes.Upon request, Centraal Boekhuis will also arrange the storage, distribution and transport of office supplies, stationary and greeting cards. All logistic activities and processes are linked with the transport centres delivery network. The centres range of services inclu des processing special offers and returned goods, (temporary) storage, order picking and carrying out special mailing campaigns with value-added logistics.The Transport Centre of Centraal Boekhuis organizes transport from and to countries outside the Benelux. In England is a consolidation point bounded, where shipments from 1600 English publishers intended for Dutch bookshops are collected and forwarded to the Netherlands. This enables Centraal Boekhuis to offer customers attractive services. Shipments from Germany and America are transported along similar lines.HistoryFor over 135 years Centraal Boekhuis have been the logistic partner in the Dutch book trade. In 1871 the Vereeniging ter Bevordering van de Belangen des Boekhandels (VBBB) in Amsterdam lay the foundations for Het bestelhuis van de Nederlandsche Boekhandel, presently called Centraal Boekhuis. Publishers send their boxes with books to that warehouse of books, where the boxes were distributed across the Netherlands.Many years later, in 1926, the VBBB decided to found Centraal Boekhuis in Amsterdam. Well-established publishers were obliged to store their books in the central depot of Centraal Boekhuis in Amsterdam. From now on the book stores and publishers could order their books with Centraal Boekhuis from one central point in the Netherlands.In 1973, because lack of space, Centraal Boekhuis grounded their company in Culemborg, where the company nowadays is still grounded. In that same year is Het Bestelhuis and Centraal Boekhuis merged into one company Centraal Boekhuis B.V (Intranet Centraal Boekhuis, 2008).OrganizationThe daily management of Centraal Boekhuis is directed by the Senior Management Team (SMT). The lead direction of the 5 Senior Managers is directed by a Chief Executive Officer, namely Hans Willem Cortenraad. They have weekly meetings to discuss the company policy and how this policy is best directed to the line managers. Centraal Boekhuis in figures (2009)Full time employees 579Pu blishers 500Booksellers 1500Available Dutch titles 80,000Number of copies delivered per year 60,000,000Number of delivery addresses per day 2500Number of packages transported per year 4,500,000Number of pallets transported per year 300,0002. PROBLEM STATEMENT RESEARCH QUESTIONAccording to Project Management Institute and Morris (2006) oorganizations often want efficiency, good financial results and success and they want it fast. It is for that matter that organizations generally focus on short-term results, such as immediate realizable financial goals. However, Centraal Boekhuis for example expects also from its employees to achieve results that corresponds to the overall long term objectives of the business strategy. This contradiction pointed me in the direction to ask myself if it is possible to operate more efficiently if the portfolio of projects is continuously linked to the business strategy of Centraal Boekhuis. My hypothesis subsequently is that the overall business strate gy will be the input for the project portfolio planning and in turn, project success impacts the goals and objectives of the business strategy.Nevertheless, the solution isnt that easy. For instance, organizations are nowadays more often integrating ideas of sustainability in business strategies. It is for that matter unavoidable that there will be projects related to sustainable strategy, namely environmental or social projects. However, will projects on behalf of other strategic objectives also be sustainable? Thats why I assume that when project management is constructed and selected in accordance with the business strategy, and more specifically linked with sustainable business strategy, projects will positively contribute to the realization of strategies as well as it subsequently will contributes to sustainability. 2The main question and hypothesis will be clarified for a reasonable interpretation of the research construction and approach.In this research the relation between project management and the pursuing of the realization of business strategies will be looked at. Foresaid leads to the following research questionwhat is the impact of the business strategy on the selection and execution of project management within organizations, and will this possible influence in consequence lead to sustainable project management?The hypothesis iswhen project management is constructed and selected in accordance with the business strategy, and more specifically linked with sustainable business strategy, projects will positively contribute to the realization of the business strategies as well as it will positively contributes to sustainabilitythe result subsequently is that the overall business strategy will be the input for the project portfolio planning and in turn, project success impacts the goals and objectives of the sustainable business strategy.Why is it so important to link the project management of an organization to its business strategies, in order to m ake projects sustainable? As stated by Johnson et al (2009) it is ultimately the fulfilling of the business strategy to aim on the fulfilling of the expectations of the stakeholders. If an organization have stated sustainability within their business strategies, stakeholders are involved in monitoring if the strategy is achieved the objectives and if there is corrective action needed. This is called strategic control and it will keep an organization in track with its achievements on behalf of its strategy (and also sustainable strategy). According to foresaid it is plausible that it is important to state sustainability in the business strategy, for making sure that projects will meet the objectives and goals of sustainable strategy.3. GOALS OBJECTIVESI will try to find out if a business strategy, specifically a sustainable business strategy, can positive influence the way on how projects will be selected and executed, as I expect it to be. I will test the hypothesis that the overal l business strategy will be the input for the project portfolio planning and in turn, project success impacts the goals and objectives of the sustainable business strategy, to see if it is possible to make project management sustainable. If so, this offers an interesting new insight in sustainable project management, which could be the basis for more research.First it is important to study literature to get familiar with the several subjects of this thesis. The several subjects that will be described are project management, business strategy and of course overall sustainability. Next I will try to describe the multifarious relative contexts between the several subjects described in the literature, in order to make my hypotheses plausible. The most important objective of the literature review is to create an elementary basic assumption for further research.Furthermore the research methodologies that I will use are a case study research and a web survey. For the execution of the case study research are various data (re)sources used, namely in-depth interviews and the study of business documentation and reports. The case study research methodology will be used to get insights in how Centraal Boekhuis arranges its business strategy, especially how it is arranged towards its project management. Then it is important to look at how the sustainable policy of Centraal Boekhuis affects the daily operations as well as the sustainable policy affect its project management.For comparison and further research I will send a web survey to approximately 100 companies with sustainability stated in their business strategy. Hopefully this will give me insights in how other companies arrange their project management related to its business strategy and maybe they have certain methodologies to make project management sustainable, so I have some interesting data to work with.My research will focus on project management, business strategies, sustainability and sustainable project mana gement in an attempt to find relative contexts to integrate business strategy and projects in order to facilitate development of sustainable project management. Overall I hope that the executed research will create a certain frame work for linking project management to the overall business strategy of an organization, in order to make project management sustainable.4. LITERATURE REVIEWAs mentioned earlier my research will focus on project management, business strategies, sustainability and sustainable project management. Therefore the theoretical background of my research will also be focused on foresaid topics.4.1 Business StrategyThe traditional literature about business strategy is often about the general definitions of business strategy, where organizations focus on where they want to be on the long term (mission and vision) and how this is achieved (goals and objectives) (Alblas Wijsman, 2001) in order to gain competitive advantages. The current literature about strategy descr ibes more that strategy is about the importance of achieving advantage in a changing environment throughout configuration of resources and competences with the aim of fulfilling stakeholders expectations (Johnson et al., 2009). Aforementioned shows that the current literature on business strategies discusses the importance of the characteristic aspects change and configuration (Kloosterboer, 2005). The relative context between business strategy and changes is an important aspect that must be taken into account before I continue my research.According to Bryan Atkin and Adrian Brooks (2009), Change Management is the key towards innovation of organizations. In order to make progress and achieve greater efficiency and better value for money and to be more effective or competitive, organizations have to do things differently and have to make changes. Harvey Maylor (2003) characterizes project management as essential aspect for managing and reducing the inherent risks associated with chan ge and innovation. Therefore changing organizations need projects for making change.4.2 Project ManagementThe Prince2 Foundation (2005) recognizes that organizations are continuously striving after agility and success by for example introducing new products and services or by improving business processes or activities. Many projects are the result of organizations that wants to manage such changes on an effectively and efficiently way. Furthermore Prince2 (2005) defines a project as a temporary organisation that is needed to produce a unique and predefined outcome or result at a pre-specified time using predetermined recourses. In practice projects bring recourses, skills, technology and ideas together to achieve business objectives and deliver business benefits.According to the International Project Management Association (2006), professional project management is broken down into the following three competences (see also figure one) Technical competences for project management beh avioral competences of project personnel and the contextual competences of projects programmes and portfolio. The technical competence covers the techniques of project management, for example the practice of Prince2. The behavioral competence represents the professional behavior of the project personal, like project management skills. The contextual competence is the linkage between the project and organizations involved. The vision on project management by IPMA in the International Competence Baceline presented in October 2006 will be critically looked at for my research. This project management approach will also be studied and discussed during the master program of the Master of Facilities Management and Real Estate. The eye of competence figures the integration of the elements of project management as seen trough the eyes of the project manager.So the essence of project management is to support the execution of an organizations strategy to deliver a considered necessary outcome (Clifford and Gray, 2002). The research of recent literature shows us that project management is nowadays recognized as one of the primary business processes (Atkin Brooks, 2009). It is for that matter that organisational changes and the application of project management for realising those changes must be linked to the overall business strategy of an organization, in order to accomplish the business goals and objectives. Simply said project management can move an organization from where it is now, to where it needs to be in the future to meets its business strategy and -objectives. For this thesis I will mainly focus on the SWOT analysis, because this management and strategy tool is used by Centraal Boekhuis for defining its strategy.The SWOT analysis can be used as a strategy formulation tool. It helps organizations to identify its Strengts, Weaknesses, Opportunities and Threats (SWOT). The Strengths and Weaknesses represent the internal factors that create value or can destroy v alue. Opportunities and Threats are the external factors that can influence the organization value (Ahaus, 2005).4.3 Business Strategies vs. Project ManagementAccording to Sabin Srivannaboon (2006), previous research on project management and its relation with business strategy mostly links the project management with business strategy through critical project selection, viewing it as part of the alignment process (For example Bard, Balachandra Kaufmann (1988) Cooper, Edgett Kleinschmidt (1998) Englund Graham (1999) etc). Also often displayed in previous research is project portfolio management. This is another concept suggested in the literature to ensure the strategic alignment of project management and business strategy and it is defined as a dynamic decision-making process, which an organization can update and revise its list of active projects (see for literature Turner Simister (2000) Cooper, Edgett Kleinschmidt (1998) etc.). Current literature shows us more about the res earch that has been done on the alignment of project management with business strategies of organizations, for example research of Sabin Srivannaboon (2006), Tony Grundy (2001) Peter Morris Ashley Jamison (2004) etc.4.4 Sustainability sustainable project managementOn Wednesday the 4th of November, member of the House of Representatives Esm Wiegman talks about faith in Sustainability and vice versa, please note in church That sustainability has even penetrated the Christian church sais a lot. We are all confronted with it and action is expected of us.Sustainability is a hot item, that is no surprise. Looking at the quotes mentioned below you can conclude that there is no process in an organization that is not interfered with sustainability items. Managers are more and more beginning to consider the environment as an additional parameter on which they base their decisions. (North, 1997) That is what Klaus North wrote is his environmental business management introduction in 1997. And Carin Labuschagne wrote almost a decade later Various driving forces originating from society, government employees and business partners are forcing companies to both incorporate sustainable development in their business practices as well as to align all internal operations and practices with the principles thereof. (Labuschagne, 2005).Sustainability, what does that really mean? Norwegian prime minister Gro Harlem Brundtland formulated it as followed The development that meets the needs of the present without compromising the ability of future generations to meet their own needs.As Labuschagne already said, there is no process in an organization that is not interfered with aspects of sustainability. Project management is just one of these processes that cannot be ignored. That is also made clear in the APM sustainable outlooks, where is mentioned that they are considering a database with project and programme managers who have specialist knowledge, experience and expertise in sust ainability issues generally or by specific sectors, locations or types of project. They also plead for the triple bottom line approach in every project. The triple bottom line approach includes environmental, social and economical sustainability (APM, sustainable outlooks).As organizations become more and more focused on environmental responsibilities, project managers cannot stay behind. (Zoyd Reed Luce) Where sustainability is grounded in almost every strategy of every large organization, this automatically is reflected in the projects of an organization. Project manager are forced to focus on sustainability these days, it becomes part of the project.4.5 Theoretical Framework for aligning projects with strategyThere are several articles expanding on the idea that there should be a certain focus on the corporate strategy when managing projects, for example the articles of Tony Grundy (2001) or Morris and Jamison (2004). Milosevic and Srivannaboon (2006) support this vision in their article and wrote an article which describes a theoretical framework for aligning project management with strategy. Milosevic and Srivannaboon have developed an empirically based theoretical framework that explains the impact of business strategy on project management and vice versa and discusses how mechanisms can be used to strengthen that alignment.As discussed earlier, strategy is about the importance of achieving advantage in a changing environment throughout configuration of resources and competences with the aim of fulfilling stakeholders expectations and defending it against competitive forces (Johnson et al., 2009). Milosevic and Srivannaboon have based their theoretical framework on the vision of Porter (1980) about Generic Business Strategies.Michael Porter states that to achieve a sustainable competitive advantage, an organization must chose a certain type of strategy. Porters generic strategies distinguishes three types of strategies, namely cost leadership, differen tiation, and cost focus (see figure 3). Competitive advantage can only be achieved by choosing one of these strategies. If an organization chooses to pursue more than one generic strategy, it will perform being badly without competitive advantage and Porter refers to that as being stuck in the middle.Milosevic and Srivannaboon use cost leadership, differentiation, and best cost as the primary focus of their analysis. They also use Shenhars strategic project leadership framework which consist of project elements like project strategy, project organization, project process and tools metrics and culture.Differentiation is about organizations pursuing a differentiation strategy by offering products and services that are unique from competition in order to satisfy the desires of their customers. This differentiation allows the organization to charge a premium price (Porter, 1980).Cost Leadership is about organizations pursuing a cost leadership strategy to gain competitive advantage an d increase market share by operate with lower costs than competition, for example tight cost controls e.g. efficient facilities (Porter, 1980).Best cost (also called focus niche) is about organizations creating a sustainable competitive advantage through combining cost leadership and differentiation. This can be realized by offering a unique product or service to a special market segment and seek to offer low cost products within a special market segment (fast time-to-market, superior product quality, etc.).According to Milosevic and Srivannaboon the competitive aspects of the business strategy drive the focus of the project management elements. They see a pattern in project management elements for the differentiation of business strategy. Their research indicates that organizations can align projects with business strategies into three levels, namely the strategic level, the tactical level, and the corrective emergent strategic feedback.The first level of this framework (typified a s mediating process at the strategic level) is the first step of the alignment process. At level 1 organization should use their intended strategy and select projects into their portfolio to determine the right projects that would contribute to the organizations strategy.The second level (typified as mediating process at the project level) involves the further planning of project details to ensure that alignment with the project life-cycle phases (Shenhars project classification) is realized. Proper alignment of projects with strategy during the project life cycle can be classified as the planning process and the monitoring process. Managers should develop a project management plan that has a certain focus on the business strategy.The third level (mediating process at the emergent strategic feedback level) is a process which uses stages, or also called stage gates or milestone, for evaluating or reviewing the project status on time, cost, and performance. These project stages are po ints in the project life cycle where projects transition from one stage to another. These stages provide project teams the opportunity to realign the project to its business strategy.5. RESEARCH DESIGN5.1 Research methodsBased on the literature of Baarde and Goede (2001), the research on behalf of this thesis is categorized in a preliminary research study, a literature review, a case study research and a web survey. For the execution of the case study research are various data (re)sources used, namely in-depth interviews and the study of business documentation and reports of Centraal Boekhuis.The preliminary research study has given multifarious insights in for example the company of the case study, but also insights about project management and the business strategy of the concerning organization. In the preliminary research study is a critically literature review completed and several managers of the human resource division have been interviewed for creating a basis for this resea rch. The products of the preliminary research study are a defined approach of the case study research, a description of the company and a defined approach of the web-survey.The case study research can be categorized in descriptive- and exploratory research study methods (Sanders et al, 2009). The descriptive study of this case study is defined by the research of qualitative data, for example the study of business documentation and reports that are in stock within the company about project management, its business strategy and sustainability. The exploratory part of the research describes the research methods in depth interviews and a web survey.In order to test how organizations work with project management related to its (sustainable) business strategy, two steps will be carried out. First, on Tuesday March 6, I will send a web survey to approximately 15 companies with sustainability stated in their business strategy. This short questionnaire will offer me data on the way the conce rning companies arranges their project management related to the business strategies, to test on how the companies makes their projects sustainable. In order to increase the number of responses and to raise the chances of the answering the questions themselves, I will keep the survey very short, and stress this in the attached e-mail.Second, I will arrange in-depth interviews with about ten representatives of project management employees of the project department of Centraal Boekhuis. In these interviews, I will attempt